How to prepare for a longer life

Posted on 27/02/2017

Life expectancy is on the rise, according to new
analysis. Not only are people likely live longer globally, but the gap
between male and female life expectancy is closing. With a longer life
expectancy comes a growing elderly population, which means more people that need
to make use of health and social care services.

With these services already being pushed to the limit, it
pays to have a plan in place for old age. It’s never too early to start
thinking about provisions for later life, and it is also important to speak to
our parents about their plans for care and support so that you know how to
support them when the time comes. It’s important that we take more responsibility
for our own care and support needs, as there is no guarantee of help from the
state. Also, we recently covered the sentiment that
children should help their parents more in old age, looking after them and
helping to ensure that their needs are met.

It’s easy to assume that our care and support needs will be
met when we’re older, but this isn’t always the case. It’s hard to get
financial support from the local authorities, as they are on tight budgets and
the criteria for getting help is set at a high level. It’s therefore likely
that you will be self-paying for your requirements in the early stages of older
age, and this means having some money available to cover this. Even if you do qualify
for local authority funding, you may wish to top up what you receive to get a
better service or have more choice over the care and support you receive. As
soon as you can, start paying into a pension and this will build up over your working
years to deliver an income in later life. You can also start saving money in an
ISA or similar, so that there is a lump sum of cash when needed. Chat to a
financial advisor about the best ways to invest funds early to give the most
reliable return in later life.

If you or your parents are already approaching the need for
care services, then there are options, such as an immediate need care fee
payment plan, which a lump sum can be invested into in return for a guaranteed income,
which could help to cover long-term care costs. Releasing the equity in your
home or downsizing can also help to release funds when needed, but think carefully
and explore all the options before selling your home to pay for care. Most
people prefer to stay at home for as long as possible and use homecare
services. The Money Advice Service has some great
advice on self-funding long-term care.

It’s not just about being financially prepared either. It’s
also good to have a preferred care plan in place. When approaching retirement,
or if you parents are, then it’s important to have a chat with family about
your/their choice of care and support services. It’s not an easy conversation
to have, but sometimes things happen and quick decisions about care need to be
made, and often by family members. If everyone knows your/your parents’
preference, it is easy to make those decisions. We have a more detailed article
looking at discussing
care needs with your elderly parents on the website, but the questions here
apply to making your own care plan too.

The key message is to make a plan now, no matter where you are
in life. It gives peace of mind and leaves you free to enjoy your life without worrying
about how you will cope when you’re older.